Starting from the USA, the economic downturn has meanwhile reached the entire world economy. The financial crisis is exacerbating the slackening of global business activity. In the euro area, demand and output are set to contract by 1.2 percent in 2009. In Austria, too, real GDP is likely to edge down by 0.5 percent, despite powerful stimulus provided by fiscal policy. The projection for growth picking up by 0.9 percent on annual average 2010 is based on the assumption that activity will gradually recover as from late 2009.